Respuesta :
Answer:
a. The price levelb. The inflation rate
Explanation:
If the Fed doubles the growth rate of the quantity of money in the economy, the supply of money in the economy would rise. The rise in money supply would increase the price level and inflation level.
Inflation is a persistent rise in the general price levels
I hope my answer helps you
The quantity theory of money provides an easy answer to this question. The rate of inflation will fluctuate in the long run as money growth accelerates.
So, Option B is correct.
The other Options are incorrect as:
- Option A is incorrect as The average of current prices over the complete spectrum of goods and services produced in an economy is referred to as the price level.
- Option C is incorrect as Physical capital refers to an organization's owned and used assets, such as buildings, machinery, and cars.
- Option D is incorrect as The labor force is made up of the number of people who are employed and those who are jobless.
Thus increase in money growth will change the inflation rate.
For more information about the inflation rate refer to the link:
https://brainly.com/question/3473705
